Former FBI and CIA Agent Guilty of Fraud, Stealing Secrets

This is a rush transcript from "The Big Story With John Gibson and Heather Nauert," November 13, 2007. This copy may not be in its final form and may be updated.

HEATHER NAUERT, CO-HOST: Ok, now we're on to the big scandal tonight and there is another major security breach at the FBI. As one of its own pleads guilty to fraud and admits to taking classified information from the United States.

JOHN GIBSON, CO-HOST: Former FBI agent Robert Hanssen is rotting in prison for the rest of his life for selling secrets to the soviets for two decades. Now another mole has been uncovered. This one was not only a FBI agent she was also a CIA spy and on top of that, she was an illegal immigrant. "Big Story" correspondent Douglas Kennedy has more on the "intelligent" infiltrator and who she may have been spying for. Douglas?

DOUGLAS KENNEDY, BIG STORY CORRESPONDENT: Yeah John and Heather, this is a stunning case. This woman was an illegal alien from Lebanon, and she managed to lie her way into both of our top spy agencies. It's a national security breach that tonight has both those agencies on the hot seat.

(BEGIN VIDEOTAPE)

KENNEDY (voice-over): The CIA and FBI are supposed to be keeping terrorists out of our country, but they couldn't keep this woman from stealing terror documents out of their own offices as a paid employee. Even though some say she raised more red flags than communist China.

STEPHEN MURPHY, U.S. ATTORNEY: Vetting doesn't catch everything. And when a person is here since 1991, via fraud, you know, you've got some history there that can be built up to make things look legitimate.

KENNEDY: 37-year-old Nada Nadim Prouty is from Lebanon and in 1991 was in the U.S. illegally. She then fooled immigration officials faking a marriage to gain citizenship, glaring facts that could have gotten her deported. Instead, she got a job working as a field agent first for the Federal Bureau of Investigations and later for the Central Intelligence Agency. Former CIA operative Wayne Simmons calls it a complete embarrassment.

WAYNE SIMMONS, FORMER CIA OFFICER: Somewhere along the line of course Douglas, someone, whoever was responsible for the background check at the FBI really, really fell down.

KENNEDY: Simmons says a background check should also have uncovered Prouty's association with Talal Shaheen one of the top fundraisers for the anti-Israel terror group Hezbollah. Shaheen married Prouty's sister Elfat El Aouar in 2000 and is said to have laundered millions of dollars from this Detroit restaurant to the Iran backed group in Lebanon. That same year, prosecutors say Prouty penetrated the FBI's computerized case system looking for information about her sister, Shaheem and herself, all while passing FBI administered polygraph tests.

SIMMONS: That's very alarming that she would have number one the capability to do it or that we had very, very poor quality people running the test.

KENNEDY: In 2003, prosecutors say Prouty once again broke into another top secret database. Detailing the FBI's investigation into Hezbollah in Detroit. They say they don't know exactly what she stole or whether she was able to successfully pass on the information to her brother-in-law.

MURPHY: Whether she was taking a little bit of stuff or a lot of stuff, it is a federal crime and that's what we've prosecuted her for.

SIMMONS: This has exposed the raw nerve, if you will, of a flaw in the background check, and without a background check, without knowing who we're hiring, and who we are employing to protect our nation, we are in big, big trouble.

(END OF VIDEOTAPE)

KENNEDY: Prouty has pled guilty to immigration fraud and conspiracy to defraud the U.S. Her plea arrangement stipulates she will be stripped of her citizenship and will serve between six and 12 months in prison. She has also been fired John and Heather from her job at the CIA, in case you were wondering.

NAUERT: I hope so.

GIBSON: We're all breathless about this, an illegal immigrant spy with terror ties and the punishment — that's it for the punishment?

KENNEDY: This has got a lot of people in the intelligence industry just completely freaked out that she's only getting six to 12 months. I spoke with the Justice Department today. They say because she is going to cooperate and because she will be a key witness, this is what they arranged for her plea deal.

GIBSON: Douglas Kennedy, Douglas thank you very much.

NAUERT: Thanks Doug.

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